Industry News

Fuel Petition By Motorists Update.

September ERC review did see fuel prices remain constant for petrol while diesel prices dropped by Kes 3. This can be attributed to the petition by vehicle owners who pressured the regulator to stop the widely disproved monthly increase. MAK forwarded a comprehensive document signed by the complainants. With such unity we can be able to get fair market practices.

Those who are yet to sign in the petition are urged to do so. Motorists office is regularly updating those who have joined via their emails on the progress of fair prices advocacy

LOW WORLD PRICES & UNFAIR LOCAL FUEL PRICES

The system of fuel pricing in Kenya leaves a lot of questions answered. The fact that vehicle owners do not usually feel the benefits of low world prices and arbitral increase of road levy is proof enough that the playground is not level.

The present fuel pricing is seriously skewed in favour of downstream marketers and upstream players. Marketers’ profit margin is marked up high by Energy Regulation Commission (ERC). According to marketers such boon (super profits) was not to be the work of the ERC. The formula used is far from what was enacted into law in 2010, which was achieved after six years of hard lobbying. The cost of landing, transport and guided overheads was set to determine the costing, however this is no longer the approach. The regulator has made fuel prices unpredictable and a constant source of anguish for motorists and economy. The bane and insincerity of the matter is, world prices have remained low but local pump prices have escalated under all false reasons and excuses.

Embassava Sacco involved in a fatal crash this week has been suspended indefinitely by National Transport and Safety Authority (NTSA)

The ban puts into question the reliability of matatu sector in serving the densely inhabited Nairobi more so Embakasi.

Pundits say a government quasi bus system would make public transport reliable.

Provision of reliable Public Transport was voted as a constitutional Right in 2010 referendum.

ERC JULY 2015 FUEL REVIEW WRONG.

Energy Regulatory Commission fuel increase on July 14 2015 was errorneous and false. The claim that the increase was influenced by weak shilling flies of the wall, since the imports were done at end of May and early June. Going by the lag time. That is the present fuel being sold was bought when the shilling had not depreciated.MAK having lobbied for reforms which brought about present fuel controls believes that ERC have reneged on the objective of the original idea of fuel pricing and their purpose as a regulatory body. The essence of a reliable oil industry was to do away with frequent and sudden fluctuations which do not only drain motorists’ purse but destabilize the economy.

New Traffic Law Regulations

Chief Justice Willy Mutunga and Inspector-General of Police Joseph Boinnet have approved the regulations by Special Working Group on Traffic, comprising a multi-agency technical team representing key stakeholders in the justice sector. This was after the team met for six months under the umbrella of the National Council on the Administration of Justice (NCAJ). It included representatives from the Judiciary, National Police Service, uNational Transportation Safety Authority (NTSA) Motorists Association of Kenya (MAK), among others.